Bitcoin has been quite the rage over the last year. With a jump from just over 2,000 to well over 18,000, there were many investors who thought that this would be a great way to make a quick profit. However, this has not been the case for those who are investing in bitcoin for even just a few months. Around the beginning of 2018, Bitcoin jumped to 17,000 leading many investors to believe that it would hold its value and continue to grow. With Bitcoin now sitting right below 6,000, there are many investors who are questioning the volatility of Bitcoin.
A big reason that many believe Bitcoin has dropped so rapidly is due to the new financial regulations in Japan. These new crackdowns are making it harder for money laundering schemes to have cryptocurrency involved. While cryptocurrency doesn’t have a completely illegal nature, there are many who believe that this is the case. Bitcoin.com says that many conservative investors have never and will never invest in Bitcoin. Hacks in cryptocurrency platforms have also lowered the trust in the security of this type of currency.
A general lack of excitement could also be explaining the lack of volume in the cryptocurrency market. The trend of investors thinking they can make quick returns could now be quickly vanishing. With no real spark in the market, cryptocurrency may be headed even further down that it originally was at the beginning of 2017. Time will only tell if there will be any further excitement in the cryptocurrency market. Cryptocurrency as a whole has dropped 61 percent this year. By the end of 2018, we may even see cryptocurrency dropping a whole 100 percent. There may be another spark in the market, but it seems for now that the trend of Bitcoin is a thing of the past.